Debate Emerges Over Whether Daily Fringe-Benefit Meals Are Taxable; Issue Is Now on IRS's Radar

When outsiders visit Silicon Valley, the first thing they often notice is the food: Cafeterias brimming with free gourmet meals and snacks offered to employees of Google Inc., Facebook Inc. and other technology firms.

But not all is as it seems in the buffet line. There is growing controversy among tax experts about how to treat these coveted freebies. The Internal Revenue Service also has been focusing on the topic, according to...